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Late Update, Off Lows

US STOCKS
Late session rebound in equities, SPUs climbing off midday lows amid prop and leveraged$ acct buying over last couple hours. ESH2 currently -66.0 at 4588.75 vs. 4561.75 low.
  • Financials continue to underperform (-2.0%) after GS Q4 earnings miss, while Energy sector outperforming +.83%. Note, crude levels hanging near all-time highs, WTI over 85.55 (+1.73).
  • Not a clear-cut risk-on/off session, despite the jump in Tsy yields to two year highs in 10s, underlying factor is next week's FOMC (Jan 26) and some confirmation from Fed on current market pricing high probability of four .25bp quarterly rate hikes starting at the March 16 FOMC.

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